5DM.SI WACC - Weighted Average Cost of Capital

The WACC of Ying Li International Real Estate Ltd (5DM.SI) is 5.1%.

The Cost of Equity of Ying Li International Real Estate Ltd (5DM.SI) is 17.15%.

The Cost of Debt of Ying Li International Real Estate Ltd (5DM.SI) is 4.55%.

	Range	Selected
Cost of equity	12.50% - 21.80%	17.15%
Tax rate	18.40% - 39.30%	28.85%
Cost of debt	4.20% - 4.90%	4.55%
WACC	4.6% - 5.5%	5.1%

WACC

5DM.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.93	2.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	21.80%

Tax rate	18.40%	39.30%
Debt/Equity ratio	6.52	6.52
Cost of debt	4.20%	4.90%

After-tax WACC	4.6%	5.5%


Selected WACC	5.1%

5DM.SI's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 5DM.SI:

cost_of_equity (17.15%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.93) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.